High Court Grants NPA R4.4m Forfeiture in Chinese-Led Investment Scam Bust
The Pretoria High Court has handed the National Prosecuting Authority’s (NPA) Asset Forfeiture Unit (AFU) a big win, allowing them to seize R4.4 million tied to a sneaky investment scam run by Chinese nationals. The cash, hidden in bank accounts, came from fake schemes that tricked people with big return promises. This ruling on Tuesday, 23 September 2025, shows the NPA’s push to grab back crime profits and hit hard at fraud rings. The group paid locals R200 for their IDs and photos to open accounts, then used them for Ponzi and pyramid tricks advertised on Facebook and WhatsApp.
The scams, under names like Trouva, Centamin, Hot Farm, and Benchmark Woodworking, looked like real companies but were built to cheat investors. As South Africa marks Heritage Day, this case reminds us how scams can hit hard on trust and savings, urging folks to stay sharp against too-good-to-be-true deals.
How the Scam Worked: IDs for R200 and Fake Investments
NPA spokesperson Lumka Mahanjana explained the setup. The Chinese nationals paid unsuspecting South Africans R200 for their personal details, including photos. These were used to open bank accounts for a web of fraud. “The schemes were primarily promoted under different names such as ‘Trouva, Centamin, Hot Farm and/or Benchmark Woodworking’, among others, to mimic legitimate companies,” Mahanjana said.
She added: “These schemes took different forms and have been identified as having some features of both Ponzi and pyramid, where they defrauded investors by promising them unrealistic returns on investments, reliance on funds from new investors to sustain their operations, and payment of new investors from money received from earlier investors.”
The AFU teamed up with the Financial Intelligence Centre (FIC) to get a preservation order first, then the full forfeiture. This stops the crooks from using the money and sends it back to the state.
Forfeited Funds Head to Crime-Fighting Account
The seized R4.4 million will go into the Criminal Asset Recovery Account (CARA), a pot used to fight organised crime. Mahanjana stressed: “The NPA’s Asset Forfeiture Unit will continue to pursue all legal remedies to ensure that assets derived from unlawful activities are forfeited to the state.”
This is part of a wider NPA drive to hit fraudsters where it hurts – their pockets. Similar busts have seen millions recovered from scams, like Ponzi schemes promising quick riches.
Broader Crackdown on Investment Frauds
This case fits a pattern of rising scams in South Africa, often run by foreign groups using locals as fronts. The NPA and FIC have stepped up, using laws like the Prevention of Organised Crime Act to freeze and grab assets. In recent months, they’ve targeted similar rings, including those mimicking legit firms to lure investors.
Experts warn these schemes thrive on social media, promising high returns but collapsing when new cash dries up. The Financial Sector Conduct Authority (FSCA) has issued alerts on fake investments, urging checks before sending money.
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